>> tom: it wasn't supposed to be like this for google. falling advertising prices, disappointing profits, and a mistimed earnings release. the internet's go-to search engine surprised the market this afternoon when it reported its third quarter results. they weren't expected until after the closing bell, but instead they were released-- wiout thorizatn, accordi to google-- by the company's financial printing company. it wasn't a pleasant surprise. google earned $9.03 per share, down from a year ago and $1.62 below estimates. yes, google's search engine continues to see more use, but the prices google charges for its core search advertisement product fell. the number of times visitors clicked on search ads was up 33%, but the prices advertisers paid for those clicks was down 15%.

>> the inventory how it goes the more clicks there are going to be, the lower it will cost people at the end of the day. >> then there's google's newest division >> tom: then there's google's newest division, motorola mobility. in may, google spent $12.5 billion for motorola's cell phone business. while motorola added more than $2.5 billion in sales in its first full quarter with google, the division still lost money, more than a half-billion dollars. because the news wasn't expected until after the close tonight, trading in google shares was halted for two and a half hours. it restarted with less than an hour before the closing bell, and the stock fell 8%, closing at a five-week low. james dix covers google as an analyst at wedbush morgan. james dix joins us at the nasdaq. i want to start with the ad rates, four quarters in a row google has seen the amount it got paid per click fall, down 15% this past quarter, 16% a quarter ago,

12% at the beginning of the year and late last year down 8%. is it making up for the lower prices by selling more, though? >> yes, i think in part that what is happening, one thing you should pay attention to a little bit this quarter is you had a currency impact on the cost per click, if you excluded the impact of currency it would have been down around 8%. which is a little bit better, actually, than we saw in the second quarter. but generally speaking, the company says hey, look at both click growth which is 33% as well as cost per click which is declining. together that would get you your ad revenue, and together those trends still were pretty good although not quite as good as expected. >> let's talk about ad revenue, this movement to mobile that has seen higher traffic but a lower ad rate. >> certainly the company talked about that as well. once again on its call, this

afternoon, that mobile doesn't monetize as well on a per click basis. they have explained and i think makes sense it is a a little harder to monetize a mobile click, harder to buy something off a mobile home so that accounts for that difference. they think it's going to converge over time. >> tom: essentially people looking at google on their cell phone or target. as valuable as people looking at google on old school personal computers. what about the motorola integration, we are a quarter in now, still losing money, does that hold hope of-- eventually or breaking up and google taking those patents? >>ou know, motorola missed a little bit on expectations as far as operating loss, it was a little higher than i was expecting. i don't think it was a material impact in terms of how people looked at the quarter. you know, i think there's still a potential the company pairs some of the business lines that it stays in, that could potentially

also help the profit as a business. but trying to make that a profitable business going forward. >> tom: i looked at the press release and there was a word missing, android, android was not actually mentioned in the press release. what about on the conference call whack are the possilities for android. it gives it away but it is it able to monetize and make money from it? >> yeah, they did mention android is averaging around 1.3 million activations daily right now. you know, that's part of their mobile growth story, part of their mobile growth strategy. so you know, there's no question android is essential to them and it's going to become important as they move more into 9 tablet space with the nexus which they are launching this quarter as well as other products which presumably they will use motorola to build. >> tom: under 700 are you a buyer? >> you know, at this level, it doesn't excite me.

my price target is-- do you have a position where it is? >> i do not. >> james, covering google for wedbush morgan. >> susie: google wasn't the only tech titan with lackluster results. profits at microsoft tumbled 22% as businesses and consumers held off on purchases ahead of the windows 8 launch. the software giant earned 53 cents a share in its fiscal first quarter, three cents below analyst estimates. revenues were also lower than expected-- down 8% to $16 billion. microsoft is counting on its new operating system, windows 8, to lift demand for p.c.s. windows 8 comes out later this month. so does the surface tablet, microsoft's first foray into the tablet market. >> reporter: i'm erika miller in brooklyn, new york, standing in the first medical facility just for freelancers. we'll show you how it's different from your doctor's office. >> susie: that early google

earnings release turned gains into losses on wall street-- the dow fell eight points, the tech heavy nasdaq lost 31, and the s&p off three. ahead of the google news, investors were puzzled by the ... today's report on the job market. jobless claims rose by 46,000 in the past week to 388,000. the bigger than expected jump reflects claims not reported by the state of california last week. the labor department calls the distortions temporary and blames technical factors in its collection process. investors were also on the lookout for news out of europe. european leaders kicked off a two-day summit in brussels to work more on resolving the european union's debt crisis. joining us now with what to expect from that meeting, andres garcia-amaya, global market strategist at j.p. morgan asset management. andres, there's been 22 summits over the past 2 years since the debt crisis started. do you think that the europeans have lost their sense of urgency to solve

this? >> i think to a certain extent f you look at, by the way, this is the fourth summit this year alone. but these summits to a certain extent, you can't expect any-- to come out of it. it is important to get the leaders in one room and try to address the big issues. having said that we think the fiscal cries liss probably drag on for a while. when you have 27 politician all trying to agree on one thing it's hard enough in this country with two, imagine 27. so it takes awhile to get the issues resolved. >> susie: there is a lot of disagreement, even on the agenda for this meeting. the french want to focus on strengthening the bankg system. the germans are saying that they want to have some kind of authority to have power over national budgets from other countries. so how is this all going to play out? >> i think when you think about what the biggest topic should be, is how to actually regulate the banking system and try to make it more integrated. and i think from the german's perspective they obviously want to keep the

autonomy from germany, from the french perspective they want to look at the european union to be closer together this has been an ongoing battle for a while. having said that i think eventually they'll get to the same place because their incentives are aligned. germany's biggest business is exports and guess who is buying their product, it's actually europe. at the end of the day i think they going to start moving in the right direction. >> and you were telling me that as far as u.s. investors are concerned, that there has been a decoupling of what is going on between the u.s. and europe. especially as we see that spain is probably going to get money it needs and its ratings are stabilized by moodies recently it so tell us eye little bit more that there is decoupling going on. >> sure. and i think from the market's perspective we are starting to see a decoupling. the basic they are lee is there were two big issues in europe. there was a fiscal crisis and a european banking crisis. i think the market is starting to realize that the fiscal cries his take a long time to get resolved. yet the banking crisis to a

certain extent has been contained by the ecb stepping in to become the lender of last resort. so for that reason, we are looking at the markets here in the u.s. starting to focus more on fundamentals here in the united states, so much in every headline coming out of europe. >> should we be more concerned about what is going on in china, especially with the news that came out today, that the economy is slowing down, and just keeps coming down, down, now the economy is growing gdp at 7.4%. and it just keeps coming down every single quarter. is that a bigger concern for the u.s. economy and u.s. investor? >> look, chinese economy, no doubt matter to the global economy. 30% of global economic growth comes from china. so a china slowdown matters from the u.s. perspective is different, what i mean by that is yes, gdp growth for the last quarter was at 7.4%. having said that, we think china has started to turn the corner when it comes to seeing some growth. but it's to the going to be the same speed that it turned the corner for the last recovery. most likely china is going to continue to grow around 7

to 8%, not at 10% it used to grow. from the u.s. perspective what we care about is what is going to be the engine of growth going forward which in our eyes going to be consumption. that bears well for american companies that actually are the beneficiaries of a growing consumer pull out of china and other emerging market countries. >> all right, we'll see how it plays out. andres, thanks so much for coming on, andres garcia-amaya global market strategist at jpmorgan asset management >> tom: college students are borrowing more money to pay for school than ever before and more

of them are taking out loans. sylvia hall reports. >> reporter: the college class of 2011 may be fresh out of school, but they've already set a record as the most indebted grads ever. and they owe a lot-- on average, over $26,000. that's up 5% from the year before, according to the institute for college access and success. >> we see hugely different debt levels for those who do borrow at different schools. the lost wsaw was out $3,000 at graduation, and the highest was more than $50,000. >> reporter: student debt also varies with where students go to college. new hampshire, pennsylvania, and minnesota grads had the highest average debt, while grads in utah, hawaii, and california had the lowest. and of course, the interest rate and the amount you pay over the life of the loan varies. >> it's not just how much you owe, but what kinds of loans you have that can really affect how hard to manage your debt may be. if you have federal student loans, you actually have a lot

of repayment options, if you're getting good advice at the right time. >> reporter: but the government isn't the only player in the field. private student loans make up about one fifth of the total debt for this graduating class. now, private student loans can be a lot tougher to pay back than the federal ones because of rigid repayment terms and high interest rates. college junior peter starkey has both kinds of loans. he pays close attention to reports like these. >> i have the maximum amount of federal loans, and then private loans on top of that, just to be able to go to college. and it sort of scares me a little. >> reporter: there are plenty of ways for students to reduce the amount they borrow, like shopping around for schools and applying aggressively for scholarships. but some experts say as long as student loans are available, colleges won't have an incentive to bring tuition costs down. >> there's no question that the cost of providing education isn't even close to commensurate with the price that people are being asked to pay. >> reporter: but for students, the answer is simple-- spur the economy. >> we need jobs that are worth $200,000 educations being made in the private sector and the

public sector, in ways that allow for students to have jobs that they love while also making the amount of money they've put into their education. >> reporter: the report doesn't include loans at for-profit colleges. since the vast majority of their students take on debt, the numbers could be higher. sylvia hall, nbr, washington. >> susie: the future of >> susie: the future of manufacturing was an important issue in the presidential debate earlier this week. president obama and mitt romney argued about the best way to bring back jobs to american factory floors. many manufactures say they need workers, but can't find them

with the right skills. but now, some companies are joining forces with community colleges to change that. diane eastabrook has details. >> reporter: a couple of years ago, acme industries was in a dilemma. orders for precision parts used oil and gas drilling equipment were flooding into the suburban chicago manufacturer, but c.e.o. warren young was having trouble hiring new employees for the extra work. >> they didn't have the kind of skills that we needed, and our mode was not to hire somebody who didn't know hardly anything. >> reporter: acme's problem led to a unique partnership with nearby harper college. c.e.o. young helped the college develop its new advanced manufacturing program, which trains students for high-demand jobs in automation, machining, metal fabrication, and supply chain management. 23-year-old marc bonfiglio is among the first students. he was a struggling musician who's found a new passion, welding.

>> it's fire, it's electricity, and you get to see, at the end of the day, a process or a project that you're working on being completed or further along. >> reporter: harper's advanced manufacturing program takes anywhere from a year to two years to complete. students come into the program, take a series of classes, move on to an internship, and then come back for more classes. while harper offered various manufacturing classes for years, it didn't have a consolidated program that trained for specific careers until now. >> people were coming here and not knowing what to train for. the key here is that the manufacturers have kind of opened themselves up to being a sort of vehicle for potential employment through the internships. >> reporter: 70 companies, including acme, have committed to offering 100 paid internships early next year. acme needs computer numerical control operators who program machines to cut precision parts. 20-year-old ian mitchell could end up interning there.

>> i like working with my hands. i like to be around people who are active and work with machines. >> reporter: harper college's idea is spreading across illinois. a $13 million federal grant will help about two dozen other community colleges develop similar programs with manufacturers. acme's young says it's a no- brainer, but something many companies probably have never considered. >> the challenge is the collaboration. we haven't been used to doing it, but we can. >> reporter: diane eastabrook, nbr, palatne, lliis. >> tom: google's disappointing earnings weighed on market sentiment. the s&p 500 started the session in the red after a jump in first time unemployment benefits. after moving into positive territory, the google news came out, sending the index back down. it finished lower by two-tenths of a percent. trading volume picked up from yesterday with 717 million shares on the big board; just over two billion trading on the nasdaq.

technology led the sector losers, falling 1.5%. the telecommunications sector put in the best performance, up 1.2%. it wasn't just google-- semiconductor maker advance micro devices also was out with its own bad news after the closing bell. a-m-d lost 20 cents per share, a nickel worse than feared. with revenue down double digits, the company will cut 15% of its staff, more than 1,700 jobs. shares fell 5.4% during the regular session to a three and a half year low. a-m-d said the trends reshaping the computer industry are "happening at a much faster pace than we anticipated." meanti, verzon sharesallied 2.4%. its wireless division continues signing up more smart-phone customers, who tend to spend more money. third quarter earnings matched estimates at 64 cents per share. more than half its post-paid wireless subscribers are smart- phone customers. while we're talking about the wireless business, sprint wants to be the majority owner of 4-g broadband operator clearwire.

clearwire's spectrum is expected to be used by sprint as it upgrades its network. it will cost sprint $100 million. last week, sprint agreed to sell a majority oitself to softbank of japan for $20 billion. trading in clearwire stock tripled with shares falling 10.2%. there was disappointment it isn't an out-right purchase of the company. one of clearwire's shareholders, intel, reportedly has 30 days to make its own offer. when the summer storm season is quiet, it helps insurance companies like travelers. earnings were much stronger than anticipated, and almost triple a year ago. the stock jumped 3.6% to an all- time high for the stock. the biggest profit margins for travelers were in its home and auto insurance businesses. in another corner of finance, morgan stanley stock was down 3.8%. adjusted earnings were better than expected, but the bank's return on shareholder equity remains about a third of its peers. the indigestion for chipotle

mexican grill shareholders looks to continue tomorrow. earnings were up 20%, but that wasn't as much as expected as sales growth slowed. shares were down 1.4% in the regular session, and off another 10% in after-hours action. if that holds through tomorrow, it would take shares to new 52-week low. four of the five most actively trade exchange traded products were lower. the financial sector fund was the lone winner, up two tenths of a percent. and that's tonight's "market focus." >> susie: all this week, we have been looking at issues facing freelancers.

one of their biggest challenges is access to affordable healthcare. since they work for themselves, freelancers aren't covered by employer-sponsored health plans. but there's a new type of healthcare center being built here in new york to meet their needs. erika miller reports. >> reporter: in a few weeks, this nondescript building in brooklyn will be home to a new, unconventional medical practice. it will be run by the freelancers union, an advocacy group for independent workers. the center is only for members of the union's medical insurance plan, and they'll get more than primary care. the 6,000-square-foot facility will offer yoga, meditation classes, nutrition counseling, acupuncture, cooking classes, support groups, and consultations with health coaches. >> they want one-stops. they want a way that they can get a lot of things done in one place. their time is money for them. >> reporter: wait times are guaranteed to be less than 15 minutes, and there will be wi-fi in the waiting room.

>> there are going to be shorter wait times, but if you happen to be here, you are going to be given a laptop so you can learn how to take a guided meditation. >> reporter: but the group's insurance plans aren't cheap, ranging from $225 to $603 a month. there's a reason the freelancers union picked brooklyn for its first medical facility. the number of freelancers in this new york city borough has increased 3,000% in the past decade. david himmelstein is a professor of public health at hunter college, and thinks the clinic is a good idea. his concern is whether the union's insurance plan can survive. >> when you set up an insurance plan and say anyone can join, basically you are likely to attract sick older people who can't get insurance elsewhere in the system. and over the long term, that has doomed similar insurance efforts in the past. >> reporter: but the freelancers union hopes its holistic approach to medicine and

emphasis on preventive care will help lower healthcare costs. and that's good for insurance company and patient alike. >> this can really give people the kind of care they need, and it can also be much more economical, so we can make freelancers' dollars go further. >> reporter: if the pilot is successful, the freelancers union hopes to expand to other cities around the country. erika miller, nbr, brooklyn. >> tom: tomorrow on nbr, we meet a woman who says she's earning almost as much money working for herself from home as she did in the office. en,ill ugh campaign talk about china trade backfire for the winning presidential candidate? and our friday "market monitor" guest says the rally in dividend stocks isn't over. he's mark skousen of "forecasts and strategies." >> susie: as investors, business leaders, and even presidential candidates call for a solution to the so-called "fiscal cliff," our commentator tonight says he has a simple way of fixing the

problem. he's bob pozen, harvard professor and author of "extreme productivity". >> here's something democrats and republicans can both suppor- reducing tax rates on u.s. corporate earnings. at 35%, it is almost the highest in the world, and that pushes companies to invest overseas, not here. what about our budget deficits? if we lower corporate tax rates, we need to find more revenues by closing tax loopholes. but many corporate tax benefits, like the research credit, promote economic growth. so what's the solution? i favor limits on corporate interest deductions. they're large and they hurt the economy. u.s. corporations claim over $1 trillion a year in interest deductions, yet these same corporations can't deduct anything on the dividends they pay to you, their shareholders. thus, the tax code now

encourages corporations to take on too much debt. and any company with too much debt is likely to go bankrupt, hurting its employees, customers, and investors. limiting corporate interest deductions to finance lower rates would make the u.s. a more mpetivelace for biness, while bolstering the solvency of american companies. that's tax reform everyone can support. i'm bob pozen. >> tom: finally, big changes ahead for "newsweek." the magazine will end its print edition at the end of the year. there will be an online only version called "newsweek global," available to paying subscribers. the decision to shut down its printing press comes amid the continued shift by consumers to web content. the change comes as "newsweek" turns 80 years old next year. that's "nightly business report" for thursday, october 18. good night, everyone. you too, susie.

>> susie: good night, tom. thanks for watching, everyone. we'll see you online at nbr.com, and back here tomorrow night. captioning sponsored by wpbt captioned by media access group at wgbh access.wgbh.org >> join us anytime at nbr.com. there, you'll find full episodes of the program, complete show transcripts and all the market stats. al follows us on our facebook page at bizrpt.

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